Despite the record crop of wheat, Ukraine's prices on bread 10-15% up

Despite the record crop of wheat, Ukraine's prices on bread 10-15% upAt the end of January, the price of a loaf of bread jumped up in the Kyiv supermarkets.

This is reported by 112 UA TV Channel.

The retailers explained that after 20 January the major suppliers (like "Kyivkhlib") raised the price of mass varieties of wheat. In the beginning, the selling price in "Eco-Market" was 5.34 UAH for the loaf of bread, and now it is a 6.12 UAH, "Ukrainian bread" went up from 7.92 UAH to 9.12 UAH.

Unofficially, retail chains report that they have addressed to the producers and asked not to raise the prices. But they refused, citing the economic factors. "As a result, the network appeared in a situation when they were forced either to accept the conditions of bakers or stay with empty bread shelves," said representatives of one of the networks.

The main reasons for the current price hike is an increase in energy prices and the increase in the minimum wage up to 3.2 thousand UAH (since January 1), as well as the increase in the price of flour, which takes about 38% of the cost of bread. Only in December-January, the price of rye flour rose by 21%, of wheat - by 15%. In December 2015 – December 2016 the price of gas increased by 21%, electricity - by 29%. For the last month, gas prices rose by 2 thousand UAH per 1 thousand cubic meters, and gas accounts for about 5% of the cost of bread, the owner of Khlibni investytsiyi company, the second largest supplier of bread in Kyiv, Yuri Tryndyuk said.

The price increase occurs despite the fact that the country collected a record grain harvest. According to the State Statistics Service, in 2016 the production of grain and leguminous crops in the amended weight was 66 million tonnes, which is the highest number for all the years of Ukraine's independence. 26 million tonnes of wheat were harvested, this is 0.5 million tonnes less than last year, rye - 391.5 thousand tonnes, which is 0.5 thousand tonnes more.

Transient stocks of grain in the current year are also high and are about 5-7 million tonnes of grain across the group, said the general director of "Ukrainian club of agrarian business" (UCAB) Taras Vysotsky.

According to UCAB, the yield is slightly lower than official statistics - about 64 million tonnes, however, Ukraine has provided all kinds of grain and no shortage of any of the species, Vysotsky said.

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